THE key points of Chancellor George Osborne’s Budget on March 20, 2013:
FUEL, ALCOHOL AND CIGARETTES
September’s fuel duty rise scrapped
Beer fuel duty scrapped. 1p off a pint of beer from this Sunday. News welcomed by Pubs of Ulster who say they have been lobbing at home and at Westminster to have beer fuel duty scrapped.
All other alcohol duties to rise by 2 per cent above inflation
INCOME TAX
Personal tax allowance raised to £10,000 in 2014 – a year earlier than planned. 10p tax band reduced zero pence.
HOUSING
‘Help To Buy’ shared equity schemes extended, with interest-free loans up to 20% of value of new-build properties
STATE OF THE ECONOMY
Forecast growth of 0.6% in 2013, downgraded from 1.2% in December
But Office for Budget Responsibility predicts UK will escape recession this year
Growth predicted to be 1.8% in 2014; 2.3% in 2015; 2.7% in 2016 and 2.8% in 2017.
BORROWING
Borrowing of £114bn this year, set to fall to £108bn, £97bn and £87bn in following years
Deficit cut by a third since May 2010
Borrowing as share of GDP to fall from 7.4% in 2013-14 to 5% in 2015-16
Debt as a share of GDP to increase from 75.9% in 2012-13 to 85.1% in 2015-16
JOBS
600,000 more jobs expected this year than at same time last year
Claimant count to fall by 60,000
INFLATION
2% Bank of England target to stay in place
SPENDING AND PAY
Most government departments to see budgets cut by 1% in each of next two years
Schools and NHS will be protected
£11.5bn in further cuts earmarked in 2015-16 Spending Review
1% cap on public sector pay extended to 2015-16 and limits on “progression” pay rises in the sector
Military to be exempt from “progression” pay limits.
Proceeds of Libor banking fines to be given to combat stress charities
TRANSPORT AND INFRASTRUCTURE
£3bn extra for new projects every year from 2015-16 until 2020, total of £15bn
HELP FOR BUSINESS
Corporation tax to be cut by 1% to 20% in 2015
New employment allowance to cut national insurance bills cut by £2,000 for every firm
450,000 small firms will pay no employer national insurance
Government procurement from small firms to rise fivefold
Tax relief for investment in social enterprises
Stamp duty axed on shares traded on growth markets like Aim.
Tax avoidance and evasion measures, including agreements with Isle of Man, Guernsey and Jersey, aimed at recouping £3bn in unpaid taxes
ENERGY AND THE ENVIRONMENT
Tax incentives for ultra low-emission cars
Pottery industry in Midlands to be exempt from climate change levy
Tax allowances for investment in shale gas
PENSIONERS
Single flat-rate pension of £144 a week brought forward a year to 2016
Cap on social care costs confirmed
FAMILIES
20% tax relief on childcare vouchers up to £6,000 per child from 2015
£5,000 payments for those who lost money in Equitable Life collapse